Strategic Information System for Business and Enterprise

This article discusses the benefits of ERP system for Woolworths, a manufacturing company based in Australia. It explains the business process of the company, system requirements, and software and vendor selection. It also outlines three ways to improve the efficiency and effectiveness of the business. The article provides valuable insights for students studying business and enterprise courses.

Running head: Strategic information system for business and enterprise
Strategic information system for business and enterprise

Strategic information system for business and enterprise
Table of Contents
Introduction.................................................................................................................................................3
Define Business Process..............................................................................................................................3
Develop business requirements...................................................................................................................6
Determine system requirements..................................................................................................................6
Software and vendor selection.....................................................................................................................8
Three way for improving the efficiency and effectiveness of the business................................................11
Level of efficiency of the technology implementation..............................................................................12
Potential security risks and data breaches..................................................................................................13
Guidelines for managing risks...................................................................................................................14
Conclusion.................................................................................................................................................15
References.................................................................................................................................................15
2

Strategic information system for business and enterprise
Introduction
In today’s modern world, every manufacturing company uses ERP system and accounting
software packages to access the data and run the business successfully. It has been noted that
ERP system contributes to make effective decisions for attaining the long term competitive
advantages in the global market. It provides various benefits to the companies by reducing the
cost and time. Furthermore, it also helps in saving the money and resources of the organization.
Woolworths Company has been taken in the task to explain and outline the benefits of ERP
system. Woolworth’s group was established in 1924 having team force around 202,000 within
the organization (Woolworths, 2018). Currently, the company is serving approx 29 million
customers around the world. It offers best quality of retail products and services to the
customers. Furthermore, the paper explains the business process of the company. Here is the
discussion about the system requirements, business requirements of the firm. Three ways through
which the company improves the effectiveness of the business have been described in the report.
It outlines the level of competency of the ERP system. It provides brief information about the
ERP system that helps to increase and amplify the productivity and efficiency of the firm and
employees as well. More information of the task has been described below.
Define Business Process
In order to achieve the organizational goal and objectives, the set of activities performed in a
systematic way, are called defined business processes. Organizations follow some rules very
strictly and business processes are based on these rules. These rule set by the individual
organization are helpful to improve organization’s economic value in the competitive market
scenario. In order to maintain organization’s market value companies are required to be directed
and these business process direct them for the same (Jaeger et al, 2011). Globalization has made
many changes in the market scenario which require companies to prioritize managing the
business process with high efficiency. Business processes are of different types. Some of them
are as Follows:
 Finance- this process of company’s business involves the management of finance or
accounts for the organization. In a single day companies make many transactions, some
3

Strategic information system for business and enterprise
of them are to be paid as bills and others are to be received from the customers. This
finance process mange all these transactions for the company.
 Manufacturing- in end product companies the quality maintaining is most important to
satisfy customer therefore, a process called manufacturing focuses on making quality
products for organization’s customers. This process of manufacturing mainly deals with
the external stockholder for the supply of raw material and supply of new products to the
customers through new clients (Nazemi, Tarokh and Djavanshir, 2012).
 Health- this is the process of tertiary sector of any economy where companies deal with
the services for the well-being or welfare of people. Health processes are mainly deals
with medical services provided to people. In this process companies provide drugs to the
individuals to cure their diseases. Health process involves both government as well as
private sector operations with different costs depending upon the operating and governing
body.
 Banking- banking sector follows a typical banking process which safeguards customer’s
economic assets like money. In this process all the credit and debit entries are managed
by the banking authorities to maintain a fair record of its customer’s assets.
 Travel- people likely to travel different places for some adventure or experience require
travel companies to manage their trips in a systematic way so that they can explore
different places spending less and in less time. This systematic management or planning
of such trips comes under the travel processes.
There are many more processes like in defence, public sector, and off human resource
management. Among all these manufacturing is the main process of Woolworths. Woolworth is
one of the manufacturing companies based in Australia dealing with the manufacturing and
selling their products online. Woolworth mainly deals in grocery items like vegetables, meat,
packaged food, and fruits. In order to retain its existing customers and attracting new customers
company is following a specific format which provides better customer satisfaction. When it
comes to retain and attract new customers the enterprise planning system will be beneficial for
the company.
4

Strategic information system for business and enterprise
(Source: http://wowcontractor.com.au/companies-business-entities/)
Business process of Woolworths
(Source: http://www.binarysemantics.com/images/manufacturing_chart2.jpg)
5

Strategic information system for business and enterprise
The above mentioned picture provides brief information about the business process of Woolroths
that help to minimize the risks and increase outputs of the firm. It explains that how order are
placed by the company and how these orders dispatch by the vendor in the marketplace.
Develop business requirements
Till now Woolworths was mainly dealing with grocery items but now company wants to expand
its business in different sectors like energy, industry, and new retail products. This requires a
complete change in their business requirements company management was practicing till now.
Therefore, to implement this new change in the business requirements, Woolworth categories, its
new business requirements, into two different categories as follows (Dos Santos, Svensson and
Padin, 2013):
Retail Others
Increasing its product range introducing liquor,
and convenience food retail items
Office supplies as well as home appliances or
decorative accessories like Kmart and Coles
Investment in industtrial coal mining
Making insurancce schemes for individuals
Investing in chemical researh and product
manufacturing like ferrtilizers ets.
Determine system requirements
The system requirements play an empirical role to accomplish the desired goal and objectives
within the organization. It is a set of statement that encompasses of a document which is
exchanged by the team members of the firm. It explains the requirements of the stakeholders in
the organization. The main motive of the system requirement is to collect information and fact
related to the customers. It helps in fulfilling the needs and requirements of the customers. The
hardware and software for the development and implementation of ERP system are included in
the system requirement. Documentation is also done by the company before implementing the
ERP system at the workplace. ERP system helps to save and protect the data and information of
the customers (AO Dos Santos, Svensson and Padin, 2014). It has been noted that Woolworths
uses SAP software within the organization to increase and improve the business process.
6

Strategic information system for business and enterprise
Login/Register: Registration shall be done to implement ERP system. The personal details such
as password, contact number and email address are kept confidential. These personal detail
ensure that users are using the system authentically and effectively.
Online shopping: It has been noted that customers of Woolworths are able to purchase the
products online also. Online shopping helps the customers to choose right and unique products
for use. Payment is done by the customers by credit/debit card or cash on delivery as appropriate.
Convenience: The software would be convenient for all the customers. It is noted that user
manual is also provided to the users to access the system effectively and efficiently.
Reliability: The customers or users can maintain reliability by using ERP system. It will also
eliminate the extra cost of the firm and helps to provide consistency to the users.
Efficiency and security: The ERP system helps thee leaders to make unique and effective
decisions regarding requirements of the system and business as well. The system also helps to
keep the records of the employees and users. Therefore, it helps to provide competitive edge
against its competitors in the Australian market (Uhl and Gollenia, 2016).
Accuracy and efficiency: It has been noted that ERP system provide accuracy and efficiency to
the users to track the record of the users. In this way, ERP system plays a significant role to
enhance and maximize the profitability and revenue of the firm (Vom Brocke et al, 2014).
ERP system
(Source: http://www.reachtechasia.com/does-your-business-really-need-an-erp-system/)
7

Strategic information system for business and enterprise
The diagram shows that ERP system plays a significant in Woolworths by maintaining good
communication and cooperation with different departments. The picture shows how ERP system
is interconnected with different department of the company (Buckel and Thiesse, 2014).
Software and vendor selection
Software and vendor selection are important to make a good image in the minds of the
customers. No company can survive and grow without effective software and vendor. It has been
stated that software helps in increasing and enhancing the performance of the workers effectively
(Morris and Venkatesh, 2010). Along with this, the Woolworths needs to use unique and
dynamic policies and strategies to carry the business activities and operations in a hassle free
manner. Vendor selection is important task for each and every company. Vendor selection is
done by the company as per the needs and requirements of the business (Schaltegger, Lüdeke-
Freund and Hansen, 2012). Vendor and new software helps the firm to strive with competitors in
the global market. Along with this, effective utilization of resources can be done with the help of
unique and attractive software. The company selects software to analyze and evaluate the
choices, desires and tastes of the consumers in order sell the retail products in the international
market. The company also uses RFID (radio frequency identification) technology to strive the
competitors in the global market. It is evaluated that Woolworths focuses on the post sale
services, and license before selecting the software for conducting the activities and operations of
the organization (Elbashir, Collier and Sutton, 2011). The software and vendor selection can be
done by Woolworths after considering various things that have been detailed below.
Computerized process: Automated process is used by the company while selecting the new
software at the workplace. Such types of procedures permit the firm to expand and explore the
business globally. By using this process, regular improvement and enhancement is done by
Woolworths to maximize market share and increase economic value of the firm. It has been
analyzed that computerized process also helps the leaders to build unique and effective strategy
within the organization. Therefore, it is essential to use computerized process but not too much
else it can put negative impact on the system (Hawking and Sellitto, 2010).
Assessment of people: The Company should make suitable contract with investors and partners
to beat the competitors. All the terms and condition should be explained clearly to them. All the
8

Strategic information system for business and enterprise
things shall be defined clearly such as cancellation fees, licenses before introducing a new
product and service in the global market. It is stated that vendor should posse’s unique and
effective skills, potential and knowledge to access the system in a hassle free manner. They
should know whether how to use ERP system within the organization. After the various
researchers, it has been found that vendor selection is done by Woolworths after considering the
skills and talents of the vendor. It is analyzed that Woolworths select the vendor in an effective
way in order to resolve business and ERP system issues (Maditinos, Chatzoudes and Tsairidis,
2011).
Communication and cooperation: It has been stated that Woolworths follows an effective
communication process while making contract with vendors to ensure that their meeting could
provide some benefits to the firm. The company maintains reciprocal relationship with vendors
to maximize the revenue and run the business operations successfully. Checklist has been
measured by the company to analyze the effectiveness and significance of the vendor. It has been
revealed that checklist is not used by Woolworths while selecting a vendor within the
organization (Ram, Wu and Tagg, 2014).
9

Strategic information system for business and enterprise
Vendor selection model
10

Strategic information system for business and enterprise
(Source: http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0101-74382014000200347)
The above mentioned diagram outlines that how Woolworths select the vendor to grab the
overall market. This vendor selection model helps the company to identify and analyze the
obstacles and issues of the market.
Three way for improving the efficiency and effectiveness of the business
In today’s globalization world, each and every company uses information system to get right and
accurate information at the workplace. This system also helps in managing the business
processes successfully. It permits Woolworths to attain their long term mission and vision by
rendering unique quality of products and services to the customers (Coles and Kirwan, 2011).
Along with this, effective and dynamic information system helps in decision making process and
furthermore, it also builds and develops dynamic relationship with target audience. Woolworths
wants to increase and enhance the market share and revenue in the marketplace. Thus, it is
significant to initiate the dynamic and effective software and ERP system at the workplace
because it is not possible for the employees to manage a ample of information and inventory in a
regular basis (Wainwright and Shaw, 2013). It is seen that software and ERP system permit the
computerized process to perform tasks and duties effectively. If the company is unable to use
software then it is very difficult to manage different function of the development, designing and
production. Software and ERP system make easy all these functions by providing right and
accurate information to the users (Jaeger et al, 2011). There are three ways through which the
company can improve and enhance the efficiency of the business that is discussed below.
Communication software: One of the significant ways through which Woolworths can improve
the efficiency of the business is communication software. Strong and unique communication is
essential for each and every business to perform roles and responsibilities effectively. It is noted
that miscommunication and misunderstandings arise at the workplace due to lack of strong
communication. It will affect the growth of the firm and will lead to the loss of the business and
profit. The company should use videoconferencing and open communication to transfer the
messages and information with each other. It will help to increase the productivity and outcomes
of the company (Norton, 2015).
11

Strategic information system for business and enterprise
Task management software: This type of software provide right and accurate information
related to process and business. The task management software permit the employees to create a
agenda and programme to perform business activities and operations in a hassle free manner.
Effective planning shall be done to increase the efficiency and effectiveness of the workers.
Milestones can be formulated in advance to execute the tasks in a given time period. Basecamp
and Wrike are some example of the task management software that can be used by Woolworths
to improve the efficiency of the business (Asemi and Jazi, 2010).
Performance and time tracking methods: After the various studies, it has been found that the
company can use performance management system and time tracking tools to enhance and
improve the performance of the subordinates and business as well. In this way, Woolworths has
been able to stand out against the rivalries in the competitive market (Grabski, Leech and
Schmidt, 2011).
Level of efficiency of the technology implementation
The MIS system and integrated system are initiated by Woolworths to evaluate the effectiveness
and efficiency of the workers and business as well. Each and every company wants to flourish
the business processes globally by increasing and improving the productivity of the employees. It
has been noted that most of the companies are failed to attain sustainability and growth due to
ineffective and improper management of utilizing the resources. It is observed that ample of
issues faced by the company while managing the performance and effectiveness of the business
and employees as well (Pang et al, 2016). The integrated information system provides
information and data about the customers and internal and external business procedures. The
company is seeking effective ways to beat the competitors in the global market. The level of
efficiency can be attained by using ERP system in the workplace. ERP system helps to integrate
the information in a single process therefore; it saves resources and time of the company. It is
noted that ample of modules provided by the ERP system that permit the business operations and
activities to be exercised effectively and efficiently (Schmiedel, vom Brocke and Recker, 2013).
The level of competency can be achieved by Woolworths by measuring and identifying the
progress and growth of the company over the past year data. It has been analyzed that growth
and success of the firm can be attained by initiating the ERP system at the workplace. All the
12

Strategic information system for business and enterprise
employees in the company are unable to perform roles and tasks successfully due to lack of skills
and knowledge. Therefore, the organization uses ERP system to handle and reduce the issues and
challenges of the marketplace. It reduces the workload and pressure of the employees.
Woolworths also uses management integration system to complete the data base system. Along
with this, records of the activities and operations can be kept with the help of this system. It has
been analyzed that ERP system reduces the cost of the firm and increases the revenue and
outcomes (Wang and Tan, 2015). Besides this, cost of ownership is also managed by ERP
system effectively and efficiently. It also reduces and eliminates the extra cost of operations. It
has been measured that ERP system increases and enhances the performance and effectiveness
and decreases the operating cost of Woolworths (Makhitha, Van Heerden and Wiese, 2014).
It is noted that Enterprise resource planning also helps in strategic planning and evaluation. It
helps to know and analyze the plans, strategies and policies of the competitors. By using ERP
system, the company has been able to identify and measure the tastes, preferences and choices of
the customers in the international market (Nour and Mouakket, 2013.). With the help of strategic
planning, effective and open communication is maintained by Woolworths between managers
and stakeholders. ERP system also helps in financial control and effectiveness of the firm. Under
ERP system, the company can also use business analytics tools and techniques to manage and
handle the transactions details of the various departments such as accounts, finance and
marketing (Buckel and Thiesse, 2014).
Potential security risks and data breaches
The risks are associated with financial activities and ERP system has been detailed below.
 Integration issues will be faced by the company while implementing the ERP system at
the workplace. It is noted that outdated system also may influence the success and growth
of the firm adversely. If the company uses outdated and old software to increase
profitability then it can lead to losses and damages. It is studied that outdated and older
software are failed to provide right and accurate information to the customers. Therefore,
it may influence the financial image of Woolworths in the global market (Zheng and Liu,
2015).
13

Strategic information system for business and enterprise
 ERP system does not address the needs and requirements of the customers which leads to
various losses in the workplace and affects the goodwill of the firm adversely. Loss of
data control is one of the biggest risks that is associated with system and software. Due to
lack of control, the organization is unable to maintain proper records of the users.
 If the motive behind the implement of the ERP system in Woolworths is not good then it
can affect the sustainability and effectiveness of the firm. It can also hamper the
reputation of the company in the international market (Fernie and Sparks, 2014).
Guidelines for managing risks
It is stated that plenty of issues faced by Woolworths while implementing the ERP system within
the organization. The risks and threats may also influence the economic value of the firm and
market share in the marketplace. Due to lack of understandings, the company is unable to
manage the external stakeholders and partners. The guidelines for managing and controlling risks
and challenges are discussed below.
 Modification and improvement shall be done in ERP system and other software to
mitigate and reduce the risks of the company (West, 2011).
 The firm should use computerized process to handle the issues and challenges rather than
manual process. It will save the time and cost of the company as well as users. Along
with this, employees will have to put fewer efforts to carry the business operations and
actions. Automation system shall be used by the company to manage and handle daily
transactions, sales, supply chain and finance department of the firm. This system will also
provide wide range of opportunities to Woolworths to expand and explore the business
and generate higher profits.
 Cloud based accounting software shall be initiated by the firm to track the records of the
users and employees. It will eliminate the risks and issues of the organization by tracking
the records and data successfully.
 It has been noted that Woolworths should use effective and unique decision making
process to take effective decisions in terms of expansion and development of the
business. The managers and top management should include employees while making
dynamic decisions.
14

Strategic information system for business and enterprise
 Vendor selection must be done by the company after considering their knowledge, skills,
reliability and authenticity. In this way, the Corporation can reduce the risks and
challenges of the business that are associated with ERP system.
 The organization should explain the benefits of the ERP system with employees to attain
competitive benefits in the marketplace.
 It is noted that Woolworths should appoint effective and talented workforce to implement
ERP system at the workplace. In this way, the firm can provide accurate and right
information to the users by reducing the risks and issues of the system.
Conclusion
The manufacturing companies such as Woolworths will have to build and improve the effective
and unique strategies and policies to improve the quality of the products and satisfy the needs of
the customers worldwide. It is impor0tant just because the competition in the manufacturing
industry is increasing day by day that could affect the reputation of the company adversely. The
above analysis shows that Woolworths uses effective strategies to implement the ERP system at
the workplace. It is recommended that the company should use focus on the customer
relationship management to attain long term benefits in the marketplace. It is measured that
Woolworths cannot attain its long term goals and objectives without using effective software
system. The paper explains the significance of the ERP system and further it also explains the
risks and challenges that are associated with ERP system. The paper also explains the business
process of Woolworths that helps to make a global leader in the competitive market. At the end,
some recommendations have been given to reduce and eliminate the risks and challenges of the
market.
15

Strategic information system for business and enterprise
References
AO Dos Santos, M., Svensson, G. and Padin, C., 2014. A “fivefold bottom line” approach of
implementing and reporting corporate efforts in sustainable business practices. Management of
Environmental Quality: An International Journal, 25(4), pp.421-430.
Asemi, A. and Jazi, M.D., 2010. A comparative study of critical success factors (CSFs) in
implementation of ERP in developed and developing countries. International Journal, 2(5),
pp.99-110.
Buckel, T. and Thiesse, F., 2014, January. Paving the way to a productive RFID system: A novel
action research based study from fashion retail. In System Sciences (HICSS), 2014 47th Hawaii
International Conference on (pp. 4680-4689). IEEE.
Coles, R. and Kirwan, M.J., 2011. Food and beverage packaging technology. John Wiley &
Sons.
Dos Santos, M.A., Svensson, G. and Padin, C., 2013. Indicators of sustainable business
practices: Woolworths in South Africa. Supply Chain Management: An International
Journal, 18(1), pp.104-108.
Elbashir, M.Z., Collier, P.A. and Sutton, S.G., 2011. The role of organizational absorptive
capacity in strategic use of business intelligence to support integrated management control
systems. The Accounting Review, 86(1), pp.155-184.
Fernie, J. and Sparks, L., 2014. Logistics and retail management: emerging issues and new
challenges in the retail supply chain. Kogan page publishers.
Grabski, S.V., Leech, S.A. and Schmidt, P.J., 2011. A review of ERP research: A future agenda
for accounting information systems. Journal of information systems, 25(1), pp.37-78.
Hawking, P. and Sellitto, C., 2010, December. Business Intelligence (BI) critical success factors.
In 21st Australian Conference on Informafion Systems (pp. 1-3).
16

Strategic information system for business and enterprise
Jaeger, B., Rudra, A., Aitken, A., Chang, V. and Helgheim, B., 2011. Teaching business process
management in cross-country collaborative teams using ERP. In Proceedings of the 10th
European conference on information systems. ECIS.
Jaeger, B., Rudra, A., Aitken, A., Chang, V. and Helgheim, B., 2011. Teaching business process
management in cross-country collaborative teams using ERP. In Proceedings of the 10th
European conference on information systems. ECIS.
Maditinos, D., Chatzoudes, D. and Tsairidis, C., 2011. Factors affecting ERP system
implementation effectiveness. Journal of Enterprise information management, 25(1), pp.60-78.
Makhitha, K.M., Van Heerden, G. and Wiese, M., 2014. Craft retailers' supplier selection
criteria-a key to market access. Journal of Contemporary Management, 11(1), pp.266-286.
Morris, M.G. and Venkatesh, V., 2010. Job characteristics and job satisfaction: understanding
the role of enterprise resource planning system implementation. Mis Quarterly, pp.143-161.
Nazemi, E., Tarokh, M.J. and Djavanshir, G.R., 2012. ERP: a literature survey. The International
Journal of Advanced Manufacturing Technology, 61(9-12), pp.999-1018.
Norton, A.L., 2015. Enterprise resource planning II-A review of critical success
factors. International Journal of Computer Science and Information Security, 13(11), p.5.
Nour, M.A. and Mouakket, S., 2013. A classification framework of critical success factors for
ERP systems implementation: A multi-stakeholder perspective. In Competition, Strategy, and
Modern Enterprise Information Systems (pp. 98-113). IGI Global.
Pang, W., Lane, J., Colmenares, J., Mayer, U.F., Singh, G., Tiwari, R., Coles, P.A. and Coey, D.,
eBay Inc, 2016. Enhanced supply and demand tool. U.S. Patent Application 15/149,964.
Ram, J., Wu, M.L. and Tagg, R., 2014. Competitive advantage from ERP projects: Examining
the role of key implementation drivers. International Journal of Project Management, 32(4),
pp.663-675.
17

Strategic information system for business and enterprise
Schaltegger, S., Lüdeke-Freund, F. and Hansen, E.G., 2012. Business cases for sustainability: the
role of business model innovation for corporate sustainability. International Journal of
Innovation and Sustainable Development, 6(2), pp.95-119.
Schmiedel, T., vom Brocke, J. and Recker, J., 2013. Which cultural values matter to business
process management? Results from a global Delphi study. Business Process Management
Journal, 19(2), pp.292-317.
Uhl, A. and Gollenia, L.A., 2016. Digital enterprise transformation: A business-driven approach
to leveraging innovative IT. Routledge.
Vom Brocke, J., Schmiedel, T., Recker, J., Trkman, P., Mertens, W. and Viaene, S., 2014. Ten
principles of good business process management. Business process management journal, 20(4),
pp.530-548.
Wainwright, D.W. and Shaw, C.S., 2013. Modernising pathology services: modelling effective
IT project collaboration. International Journal of Public Sector Management, 26(4), pp.268-282.
Wang, W. and Tan, F.T.C., 2015. A Benefit Expectation Management Framework for Supply
Chain Management Systems. In Enterprise Systems. Strategic, Organizational, and
Technological Dimensions (pp. 247-270). Springer, Cham.
West, R., 2011. The temporal dynamics of prospective memory: a review of the ERP and
prospective memory literature. Neuropsychologia, 49(8), pp.2233-2245.
Woolworths.2018. About us[Online], Available from
https://www.woolworthsgroup.com.au/page/about-us, [Accessed as on 25th may 2018].
Zheng, Y. and Liu, X., 2015. Blunted neural responses to monetary risk in high sensation
seekers. Neuropsychologia, 71, pp.173-180.
18